Striking Trade Deals: Reeves' Race Against the Clock with the US and Europe

In an intense push to secure an essential trade deal with the United States, UK Chancellor Rachel Reeves emphasized her understanding of President Donald Trump’s concerns regarding tariffs. Meeting with US Treasury Secretary Scott Bessent, Reeves underscored that the UK government is working “flat out” to address economic frustrations reminiscent of the voter sentiments that brought both governments to power.

Reeves hinted at a potential reduction in US car import tariffs, from 10% to 2.5%, signifying a strategic move within broader negotiations. Despite Trump’s existing 25% tariff on UK car imports and higher broad tariff rates impacting the UK and other nations, the US administration has shown optimism regarding a future deal. Vice-President JD Vance even stated there’s a “good chance” of reaching an agreement.

Throughout the week, Reeves engaged not only with US officials but also maintained dialogue with European and Canadian counterparts to eliminate trade barriers amidst challenging discussions at G20 meetings. She acknowledged the negative impact of uncertainty on investment in the UK economy, highlighting that there would be no celebrations even if a deal with the US is struck, as many other countries remain affected by tariffs.

While the Chancellor’s focus lies heavily on US talks, she pointed out that the UK’s trading relationship with the EU is of paramount importance, as they are the closest neighbors and trading partners. With a summit set for May to attempt a “reset” of EU relations, Reeves is prioritizing this regional connection while balancing international negotiations, aiming to ensure that any agreements foster British jobs and benefit British consumers.